Trade and Logistics - The Times Of Central Asia

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Trade and Logistics

China’s Zhongyun to Partner on $300M Seaport Project in Aktau

A new $300 million seaport is set to be built in Aktau, with China’s Zhongyun International confirmed as the strategic partner. The announcement was made by Nurdaulet Kilybay, Akim (Governor) of the Mangistau region, during a government meeting on November 25. Located on the Caspian Sea in western Kazakhstan, the port of Aktau connects to Azerbaijani ports Baku and Alyat to the west, and to the Iranian port of Bandar-e Anzali to the south. The Aktau-Alyat ferry crossing plays a key role in the Trans-Caspian International Transport Route, part of the larger Belt and Road Initiative linking China to Europe via Kazakhstan, Azerbaijan, Georgia, and Turkey. The route significantly shortens delivery times to the European Union. Aktau’s current cargo port has a capacity of 3.2 million tons of dry goods and 12.5 million tons of crude oil annually. In June 2025, the first phase of a $38 million container hub was launched in Aktau, expanding the port’s capacity from 140,000 to 240,000 twenty-foot equivalent units (TEU). Over the summer, Mangistau authorities held talks with several Chinese firms about building a modern seaport and logistics center in Aktau. Zhongyun International has since registered a local subsidiary and is preparing documentation for an investment agreement. “This project will contribute to the formation of a new international transport corridor: China-Kazakhstan-Aktau-Baku-Poti-Europe. Its implementation will cut delivery times by 7-15 days, reduce transport costs by 18-25%, and create new jobs,” Kilybay said. Additional Infrastructure at Kuryk Port At the same meeting, Minister of Trade and Integration Arman Shakkaliev reported on progress at the Sarzha multifunctional marine terminal in the port of Kuryk, located on the eastern Caspian coast near Aktau. The $189 million project is being developed with private investment. “The general cargo terminal and temporary storage facility are now operational, and cargo transshipment has already begun,” Shakkaliev said. Terminals for grain, bulk, chemical, and universal cargo, as well as a transport and logistics center, are currently under construction. The port of Kuryk now handles up to 6 million tons of cargo per year, 4.1 million tons via the railway terminal and 1.9 million tons via the road terminal. In 2024, dredging works in the port’s waters were completed ahead of schedule, enabling deeper drafts and the full loading of vessels.

SCO Summit

Mirziyoyev Bets on the SCO to Boost Uzbekistan’s Security and Economy

Tianjin, China - The recent Shanghai Cooperation Organization (SCO) summit drew wide attention as leaders from across Eurasia convened to emphasize the Organization’s growing importance. For smaller members, the meeting was a chance to show commitment to regional cooperation and alignment with the bloc’s major powers. Uzbekistan, under President Shavkat Mirziyoyev, stood out by using the platform to outline his intention to strengthen engagement within the SCO to advance both economic development and security. Mirziyoyev’s speech stressed solidarity in the face of global uncertainty, institutional renewal to improve effectiveness, and deeper cooperation in areas such as security and nuclear policy. He also endorsed expanding membership, particularly from the Global South, while presenting proposals to boost trade, logistics, and investment. These priorities are consistent with Uzbekistan’s ongoing strategy of aligning its national agenda with the SCO’s broader evolution into a forum with Eurasian and global relevance. Reinforcing Multilateral Solidarity Uzbekistan’s solidarity with the SCO has been in the making for years, as Tashkent aligns parts of its security and economic strategy with the Organization’s framework. In his latest address, Mirziyoyev emphasized the role of solidarity amid rising instability: “A systemic crisis of trust, the escalation of conflicts, the weakening of multilateral institutions, and the fragmentation of the global trading system are undermining the foundations of the international architecture of security and stability. In these circumstances, mutual understanding and solidarity among the SCO member-states are not only a valuable asset, but also the key to preserving peace in our vast region.” While Russia emphasizes the SCO’s role in fostering multipolarity and China focuses on resilient supply chains, Uzbekistan is leveraging the principle of solidarity to safeguard its national interests - reducing dependence on any single power. Uzbekistan is positioning itself within the SCO to align its domestic priorities with broader SCO agendas shaped by Russia’s focus on security and China’s emphasis on economic initiatives. Expanding Membership and External Engagement Mirziyoyev underscored the SCO’s “openness,” identifying expansion as central to its continued development. He welcomed greater engagement with new members and partners, though he did not specify particular regions. Uzbekistan’s growing cooperation with countries such as Iran and Saudi Arabia demonstrates how this vision of openness is taking shape in practice. Tashkent has actively supported Iran’s accession to the SCO and recently signed agreements on transport corridors that connect Central Asia to Iranian ports on the Persian Gulf, facilitating greater trade with Iran. In parallel, deepening ties with Saudi Arabia - particularly through ACWA Power’s renewable energy projects, now among Uzbekistan’s largest foreign-funded ventures - illustrate Uzbekistan’s broader engagement with the Global South in the areas of connectivity and investment. These moves parallel Russia’s and China’s efforts to expand the SCO’s influence beyond its founding region. For Uzbekistan, expansion offers new avenues for trade, energy cooperation, and investment partnerships, while reinforcing its image as a bridge-builder. By publicly supporting this process, Mirziyoyev signaled that Uzbekistan expects wider membership to enhance both the Organization’s and its own standing. Institutional Alignment with the SCO A...

Trilateral Relations

Trilateral Summit in Turkmenistan Focuses on Transport, Energy, and Trade

On August 22, a trilateral summit was held in Turkmenistan’s Avaza National Tourist Zone, bringing together Uzbekistan President Shavkat Mirziyoyev, Chairman of the Halk Maslahaty of Turkmenistan Gurbanguly Berdimuhamedov, and Azerbaijan President Ilham Aliyev. The leaders focused on strengthening cooperation in trade, the economy, transport, energy, and humanitarian affairs, while also emphasizing the development of political, cultural, and multilateral ties. Transport and Transit Mirziyoyev presented several initiatives aimed at expanding regional transport routes and maximizing the region’s transit potential. He highlighted the strategic importance of integrating existing and new corridors to better connect China with South Asia, the Middle East, and Europe. Construction of the China-Uzbekistan railway is underway, and a memorandum has been signed with Pakistan and Afghanistan to establish the Trans-Afghan Corridor. According to Mirziyoyev, these projects could significantly enhance infrastructure utilization across Azerbaijan, Turkmenistan, and Uzbekistan. The development of the Middle Corridor and the Zangezur Corridor was also discussed. The leaders agreed to collaborate on increasing the capacity of regional transport hubs, constructing modern logistics infrastructure at the ports of Turkmenbashi and Baku, implementing a unified tariff policy, and digitizing freight systems. Uzbekistan expressed its willingness to reduce tariffs on a reciprocal basis to facilitate improved access to global markets for regional businesses. Energy Cooperation Energy cooperation was another key focus. The participants emphasized the need to expand collaboration in energy exports and to explore new supply routes. A proposed project to export “green” energy to Europe was described as promising. Additionally, in the hydrocarbon sector, the leaders proposed deeper cooperation in geological exploration and offshore field development in the Caspian Sea. “Joint efforts in the fields of transport, transit, and logistics will be of great importance not only for our countries but also for the wider region,” said President Aliyev, stressing the strategic nature of trilateral cooperation. Aliyev also noted that Azerbaijan’s state oil company SOCAR has begun developing an oil field in Uzbekistan, with results expected in the coming years. Trade and Industry According to summit participants, mutual trade volume between Uzbekistan, Turkmenistan, and Azerbaijan has doubled in recent years, with industrial goods making up 40% of this trade. Talks included preparations for a Comprehensive Action Plan aimed at developing trade and logistics chains, establishing wholesale distribution centers, unifying phytosanitary standards, introducing digital product labeling, and launching joint online platforms. The leaders also underscored the importance of regional engagement and called for increased organization of trade fairs and business forums under the auspices of national chambers of commerce and industry. Summit Outcomes The summit concluded with the endorsement of a new trilateral program for cultural and tourism exchanges, aimed at boosting regional tourism and promoting shared cultural heritage. A joint presidential statement was issued, alongside memoranda of cooperation in the fields of transport and logistics, shipbuilding, and aviation. Additionally, an agreement was signed on cooperation between national commodity and raw material exchanges. To ensure implementation, President Mirziyoyev proposed the development of a roadmap and the institutionalization of regular ministerial meetings focused on key cooperation areas.

Bilateral Cooperation

Cholpon-Ata to Host ‘Day of German Economy in Kyrgyzstan’

On August 26, Kyrgyzstan will host one of its most prominent international business events of the year, the Day of German Economy in Kyrgyzstan, alongside the 4th meeting of the Kyrgyz-German Business Council. The events are organized by the National Investment Agency under the President of the Kyrgyz Republic. According to the agency, the forum will take place at two venues in the resort city of Cholpon-Ata: the Rukh Ordo Cultural Center and the No. 2 State Residence of the President of the Kyrgyz Republic. The event is expected to bring together high-level participants, including government officials, business leaders, industry associations, and investors from both Germany and Kyrgyzstan. Welcoming remarks will be delivered by Adylbek Kasymaliyev, Chairman of the Cabinet of Ministers of Kyrgyzstan, and Professor Reinhold Krämmel, Honorary Consul of Kyrgyzstan in Munich and Deputy Co-Chairman of the Kyrgyz-German Business Council. The forum will feature two thematic panel sessions: "Energy Projects for German-Kyrgyz Economic Cooperation" - focusing on opportunities in green energy and infrastructure development. "Export Potential and Logistics in the Transition Period: Opportunities of the Middle Corridor" - examining evolving trade routes and modern logistical challenges. In addition, Kasymaliyev will attend the meeting of the Kyrgyz-German Business Council. Discussions will center on the theme: “Kyrgyz-German Trade, Economic and Investment Cooperation: Finance as an Integral Part of the Partnership.” The primary aim of the event is to deepen economic dialogue, enhance trade and investment relations, and strengthen the strategic partnership between Kyrgyzstan and Germany.

Official Visit

Tokayev to Visit Kyrgyzstan for High-Level Talks on Aug. 21–22

Kazakhstan’s President Kassym-Jomart Tokayev is due in Kyrgyzstan for an official visit at the invitation of President Sadyr Japarov, with the main program set in Bishkek. An announcement, carried by state media, confirmed the trip and outlined that talks would take place on deepening political and economic ties. Local authorities have introduced traffic restrictions for Aug. 21–22, indicating a two-day schedule including protocol events and bilateral meetings. The leaders are expected to review cooperation across trade, transit, and energy, and to convene the Supreme Interstate Council, the highest bilateral forum, to sign documents prepared by their foreign ministries in recent weeks. Diplomatic sources say deliverables could include measures to ease border procedures and timelines for joint infrastructure projects. A Busier, More Formalized Partnership Kazakhstan and Kyrgyzstan have intensified engagement through 2024–2025 with frequent ministerial contacts, new investment pledges, and coordination on water-energy policy. In early August, the countries’ foreign ministers initiated a 2025–2027 cooperation plan for presidential approval at the upcoming summit. Energy is central: the governments, together with Uzbekistan and international partners, have advanced groundwork on the Kambarata-1 hydropower plant, a flagship project intended to expand clean generation and regulate seasonal flows in the Syr Darya basin. Economically, both states are members of the Eurasian Economic Union, giving their businesses a shared customs space and labor mobility framework — a recurring theme when leaders meet to resolve practical bottlenecks in border trade and logistics. Business groups on both sides are also pushing for upgrades to road and rail crossings and for the expanded use of digital customs tools. Tokayev’s program is expected to include a formal meeting with President Japarov, a session of the Supreme Interstate Council, and a signing ceremony. While detailed communiqués typically follow the talks, officials in Bishkek and Astana have signaled that this visit aims to translate recent preparatory work into specific targets on trade, transport, and energy, setting the tone for the next phase of Kazakh–Kyrgyz relations.

EAEU

Has Kyrgyzstan Benefited From Its Membership of the EAEU?

On the sunlit shores of Lake Issyk-Kul this August, Kyrgyzstan played host to leaders from across the Eurasian Economic Union (EAEU). On August 14-15, officials from Armenia, Belarus, Kazakhstan, and Russia descended on the resort town of Cholpon-Ata for a meeting of the Eurasian Intergovernmental Council, accompanied by ceremonies to mark a decade since Kyrgyzstan joined the Moscow-led economic bloc. The Kyrgyz government issued a commemorative stamp to celebrate the anniversary, while the guest of honor, Russian Prime Minister Mikhail Mishustin, arrived with pledges of deeper integration. Rosatom, Moscow’s nuclear agency, signed agreements to build Kyrgyzstan’s first wind farm near Issyk-Kul, while the union’s five governments also agreed to recognize each other’s digital documents, and talks continued on a long-awaited gas union. Mishustin also caused a stir on social media by addressing the Kyrgyz honor guard in their own language. The words “Salam Asker” (hello, soldiers) were enough to draw appreciation from a Kyrgyz society unused to hearing Russian politicians use any language but Russian in its former colonies. The flattery was all part of the choreography: in return, Kyrgyz government officials and state media fell in line to proclaim the benefits of EAEU membership. But have these benefits been worth it? Or has the EAEU merely tethered Bishkek to a partner whose grip is more suffocating than supportive? [caption id="attachment_35121" align="aligncenter" width="1600"] The Conference Hall at Cholpon-Ata, where the council meeting took place; image: Joe Luc Barnes[/caption] The Case for the Union Kyrgyz officials are keen to emphasize the upsides. In an interview with state mouthpiece Slovo.kg, former economic minister Arzybek Kozhoshev said that joining the bloc had eased conditions for Kyrgyz migrant laborers in Russia and Kazakhstan. “With the accession of the Kyrgyz Republic to the EAEU, the conditions of stay and work of citizens of the Kyrgyz Republic in other EAEU countries have changed significantly,” Kozhoshev said, highlighting simplified entry, no requirement to take a Russian language exam, equal access to health insurance, and even the right to draw pensions on par with local workers. For a country where remittances have accounted for around 25% GDP over the past decade, these measures are not insignificant. Kyrgyz drivers, once barred from operating commercial vehicles in Russia, now enjoy full rights. Digital labor platforms like Work Without Borders make it easier to find jobs, and migrant workers in Russia pay the same flat 13% tax as local workers. In short, for the hundreds of thousands of Kyrgyz toiling in Moscow, Novosibirsk, and Almaty, the EAEU has meant fewer hurdles and more predictability. It’s worth bearing in mind that other potential labor destinations, such as Korea, the United States, or the European Union, are not handing out hundreds of thousands of visas to Kyrgyz citizens every year. Kremlin officials have also stressed that Kyrgyzstan pays lower tariffs on Russian gas – only $150 per 1,000 cubic meters, due to its EAEU membership. That said, given Russia’s current oversupply of gas with the closure of the European market, this is not...